Crude Oil Plunges Below $100 A Barrel

(RTTNews) - Reflecting concerns about the outlook for global demand, the price of crude oil showed a substantial move to the downside during trading on Tuesday.

Crude for August delivery plummeted $8.25 or 7.9 percent to $95.84 a barrel, closing below $100 a barrel for the first time in two months.

The steep drop in crude oil prices reflected concerns that a slowdown or outright recession by the global economy will lead to reduced energy demand.

Concerns about the emergence of a new, more infectious Covid-19 strain in several parts of the world continue to weigh on investors' minds.

Many cities in China are already taking steps to stop the spread of the new strain, leading to worries about another round of painful lockdowns, especially in Shanghai or Beijing.

A Covid-19 resurgence and the resumption of Chinese lockdowns could put further pressure on a global economy that is already being squeezed by aggressive monetary policy tightening by the world's central banks.

Looking ahead, trading on Wednesday may be impacted by reaction to the latest weekly reports on U.S. oil inventories.